A letter from Pat Kampling
Innovation, combined with solid strategy execution by our talented and dedicated employees, has resulted in another year of strong financial performance for Alliant Energy.
In April 2016, our Board of Directors approved a two-for-one common stock split and last fall agreed upon a 7% increase to our expected annual common stock dividend, setting the target for 2017 at $1.26 per share. When combining our stock performance and dividend payout for the last five years, your Alliant Energy investment has delivered a higher return than the Edison Electric Institute Stock Index and the S&P 500 Index. Alliant Energy’s stock joined the S&P 500 Index last June, becoming one of just 28 energy providers that are a component of the Index.
We continue to follow through on our strategy. By advancing clean, economical and sustainable energy, providing innovative energy solutions and investing in a smarter, stronger, more secure power grid, we continue to meet our customers’ evolving needs for both today and beyond.
Clean, economical, sustainable energyWe are transitioning to a more balanced energy mix by combining clean and renewable sources with traditional ones, while ensuring that electricity and natural gas remain safe, reliable and affordable for all customers.
Since 2010, we‘ve retired, repurposed or converted one-third of our coal-fired generation. And, our recent investments in highly efficient natural gas-fired generation are complementing growing renewable generation. We’ve just completed a 650-megawatt, natural gas-fired generating station in Marshalltown, Iowa. A similar facility in Beloit, Wisconsin, is under construction and expected to serve customers by early 2020.
While wind and hydroelectric power have been part of our energy mix for decades, we are making significant investments in additional renewable energy as it becomes more economical. Our approximately $1 billion investment in Iowa will add up to 500 megawatts of wind energy by the end of 2020. And we look to add even more wind energy to serve our Iowa and Wisconsin customers.
Innovative energy solutionsOur customers’ success is our success. By providing our business customers services, such as energy usage analysis and energy-efficiency options, we help improve their competitiveness and bottom line. We are also developing new sustainability solutions that support environmental goals and help customers reduce emissions. Examples include providing incentives for workplace electric vehicle charging stations and assisting our customers in converting to quieter, cleaner truck refrigeration units powered by electric energy.
Smart, strong, secure power grid
The role of the power grid has changed. Evolution of technology, increased private generation and a new threshold for security requires an energy infrastructure that is smarter, stronger and more secure. Electric and gas distribution systems will continue to be an area of growing investment. Last year, we invested more than $400 million and plan to invest nearly $2 billion over the next four years.
Powering customers, powering beyond
These efforts and investments create jobs and drive economic growth. We take pride in partnering with our communities to help them thrive. Additionally, our company, foundation and employees donated $6.4 million to local efforts in 2016.
This is an exciting time for our company and our industry. We cannot stop at what worked previously or even at what works today. We strive to go beyond the traditional, beyond the expected. Powering our customers and communities – powering beyond.
Thank you for your support.
Patricia Leonard Kampling
Chairman, President and CEO
- Management’s Discussion and Analysis of Financial Condition and Results of Operations F-4
- Management’s Annual Report on Internal Control over Financial Reporting F-34
- Report of Independent Registered Public Accounting Firm F-35
- Consolidated Financial Statements F-37
- Notes to Consolidated Financial Statements F-41
- Selected Financial and Operating Statistics F-77